After the bell the traders pored over results from Texas Instruments and Amgen. How should you trade these names in the wake of earnings?
AFTER HOURS ACTION: TEXAS INSTRUMENTS
Texas Instruments posted higher-than-expected results Monday, but shares were flat after the firm gave a tepid outlook for the current quarter.
Looking at the numbers, the chipmaker reported fiscal third-quarter earnings of 71 cents a share. TI earned 42 cents a share during the same period a year earlier.
Sales for the most recent quarter rose to $3.74 billion, up from $2.88 billion last year.
The company was seen earning 69 cents a share on revenue of $3.69 billion, according to a consensus estimate from Thomson Reuters.
The company said it expects fiscal fourth-quarter revenue between $3.36 billion and $3.64 billion and earnings of 59 cents to 67 cents a share.
Wall Street analysts expected fourth quarter revenue of $3.51 billion and earnings of 63 cents a share.
What's the trade?
It’s the guidance that investors didn’t like, explains Tim Seymour. TI is saying the consumer isn’t strong and that’s spooked investors a little because other companies didn’t really say that. However, if you’re a long-term investor I think the stock is cheap.
I’m also a buyer, says Stephen Weiss, author of The Billion Dollar Mistake.
There was nothing in the report that I thought was terribly damaging, adds Joe Terranova. I’m a buyer on dips.
AFTER HOURS ACTION: AMGEN
Shares of Amgen slipped modestly in extended trade after the company reported that its third-quarter profit fell on declining sales of some of its biggest drugs, but the results exceeded Wall Street's tempered expectations.
Looking at the numbers, the world's largest biotechnology company posted a net profit of $1.24 billion, or $1.28 per share, down from a profit of $1.39 billion, or $1.36 per share, a year ago.
Excluding items, Amgen earned $1.36 per share. Analysts on average expected $1.27, according to Thomson Reuters I/B/E/S.
Revenue was flat at $3.82 billion and shy of Wall Street estimates of $3.77 billion.
The company maintained its full-year forecast for revenue slightly below $15.1 billion, which had been the bottom of an earlier forecast range, and still sees adjusted earnings toward the low end of $5.05 to $5.25 per share range.